Major Industrial Deal: PCCP & Stonemont Acquire $1B+ Portfolio From Blackstone

A joint venture between PCCP and Stonemont Financial Group has officially finalized the acquisition of a massive, 5.9-million-square-foot industrial portfolio from seller Blackstone. The off-market transaction closed on July 29 for upwards of $1 billion with advisory services provided by Eastdil Secured. Financing for the purchase was arranged through debt from JP Morgan and Wells Fargo with Eastdil Secured advising on the debt execution, as well.

“The acquisition of this portfolio represents PCCP’s continued conviction in the industrial sector and in markets we have actively invested in within the last five years,” said Ryan Dodge, a partner with PCCP. “We believe our industrial portfolio continues to exhibit strong momentum with increased leasing demand in recent months. In our view, this portfolio is well-positioned to benefit from those same market tailwinds.”

“This transaction reflects our conviction in the long-term fundamentals of the industrial real estate sector,” said Zack Markwell, CEO and managing principal at Stonemont. “We are pleased to have once again partnered with PCCP and will continue to pursue attractive acquisition opportunities alongside our active development program.”

The acquired assets consist of bulk and light-industrial facilities spread across 14 markets in 10 states, encompassing 38 properties leased to more than 70 diverse tenants. The portfolio spans infill submarkets such as Denver; Dallas; Atlanta; and Charlotte, N.C., alongside high-growth industrial markets in San Diego; Reno, Nev.; and El Paso, Texas.

Stonemont President, Bryan Blasingame, noted in a statement that the portfolio was carefully selected to highlight properties at the intersection of population growth, cross-border trade and tenant demand, backed by a stable, long-term tenant base. With the deal completed, the joint venture plans to drive revenue growth through contractual rent increases and by marking leases to market upon renewal.

This transaction marks the 262nd industrial deal for PCCP, a firm that currently manages more than 68 million square feet of industrial space across 52 markets. For Atlanta-based Stonemont, which has deployed more than $8 billion in capital since launching in 2007, the purchase adds to a long history of joint ventures with PCCP. The two frequent partners have previously teamed up for nationwide industrial projects and portfolios, including the 100,698-square-foot TIA Executive Center in Tampa, Fla., and the 295,506-square-foot Passaic Logistics Center in New Jersey.